Investments in concentrated solar power (CSP) plants that deploy molten salts thermal energy storage (TES) have been pretty impressive. Molten salts TES, a system to store the sun’s heat during daytime to produce electricity at night, has been around for quite a while now and is gradually becoming more popular. The systems can be installed almost anywhere – ranging from buildings to thermal power plants – wherein it can capture energy and conserve it for later use.

The market for molten salts thermal energy storage is expected to reach US$2.5 bn by the end of 2023, rising from US$0.48 bn in 2015 by clocking an impressive CAGR of 24.7% in terms of revenue.

Q. Will the 2016 U.S. presidential election have an adverse effect on the market?

A. The outcome of the 2016 U.S. presidential elections has brought renewable energy back into the headlines albeit for the wrong reasons. The fear that the president-elect might undo what the previous regime achieved on the Paris climate accord front is likely to spell bad news for the energy sector as a whole, industry experts believe. The outcome of the elections resulted in a jump in dirty energy stocks, with clean energy stocks plummeting. This is slated to impact the molten salt thermal energy storage market, particularly in the U.S., which holds a substantial share.Q. What has driven the growth of the market so far?

A. With air pollution threatening to choke most nations and rising greenhouse gases depleting the Arctic and Antarctic ice covers, governments, scientists, and environmental activists all over the world have woken up to the imminent threat from a rapidly deteriorating climate. They are increasingly focusing on renewable sources of energy instead of traditional fossil fuels such as coal and petroleum, which are highly polluting. This has powered the market for molten salt thermal energy storage, which helps store renewable thermal energy.

Additionally, higher demand for energy and strong performance and optimized cost of molten salt thermal energy storage is also predicted to spike the demand.

Q. What is the reason behind the stellar performance of the Europe market?

A. Europe, which has been at the forefront of investing in the clean energy sector, holds an almost 80% share in the global molten salt thermal energy storage market. This is a result of its early initiation into the market due to government regulations relating to emission standards and the use of renewables. Most countries in Europe have opted for molten salt thermal energy storage for effectively augmenting their power supply and distribution. The high importance attached to the technology in the region has brought about further innovations in thermal energy storage units and resulted in an increased number of players.

North America follows Europe in terms of market share by the sheer dint of being an early initiator again. The scenario, however, is rapidly changing with Asia Pacific and the MEA region predicted to become crucial players in the market vis-à-vis molten salt thermal energy storage usage and technology development.